Step 2 – Work out how much to save each month

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“We were spending on things that weren’t actually that important to us. Like buying coffees and snacks on the way to work and back. Seems trivial – two pounds here, three pounds there. Between us, we were spending £20 a week. That’s over a thousand pounds a year! On sweets and stuff.” – Kate

Not sure how much you can afford to save? Start small – maybe just putting your change each week into a jar.

If that works, try setting aside a bit more on a regular basis.

Be realistic – it’s better to commit to a smaller sum you’re confident you can manage than a bigger amount that you give up on.

Set yourself a target: say an emergency fund of £200.

Once you’ve reached that, raise the bar and go for a bigger sum. Use our Savings calculator to see how your savings could build up.

When an emergency does crop up, use the emergency pot, but then carry on saving to build it up again.